The Central Bank of Nigeria injected more than N1.7 trillion into the banking system in the first week of February 2026 through cumulative repayments of Open Market Operations bills and primary market instruments.
This is according to Nairametrics’ analysis of the apex bank’s financial activities covering February 2 to February 6, 2026.
The liquidity inflow came even as the CBN maintained an aggressive monetary tightening stance aimed at curbing inflationary pressures and supporting stability in the foreign exchange market, signalling a careful balance between repayments and liquidity control.
What the data is saying:
Financial data from the CBN show that the bulk of the liquidity injection during the period was driven by maturing instruments rather than fresh liquidity creation.
The most significant inflow occurred early in the week, reflecting the scale of OMO maturities falling due.
- A total of N1.03 trillion in OMO bills matured on February 3, accounting for the single largest liquidity injection during the week.
- Primary market repayments added N668.87 billion on February 5, alongside an earlier N24.38 billion redeemed earlier in the week, taking cumulative repayments above N1.72 trillion.
- Rather than issue fresh OMO bills to mop up liquidity, the CBN relied on Nigerian Treasury Bill auctions across the 91-day, 182-day, and 364-day tenors to absorb excess funds.
Overall, the data indicate that while liquidity pressures eased temporarily due to repayments, the CBN remained cautious in its approach to re-injecting funds into the system.
More insights
Despite the sizeable inflows from maturing instruments, banking system behaviour suggests that liquidity conditions remain tight and risk appetite subdued.
- Banks largely chose to place surplus funds back with the apex bank rather than expand interbank activity or lending.
- Standing Deposit Facility balances climbed to as high as N2.65 trillion on February 5 before easing to N2.49 trillion on February 6, reflecting continued preference for risk-free placements.
- Opening balances of banks and discount houses stayed relatively low, fluctuating between N85.59 billion and N163.8 billion during the week.
The combination of low opening balances and high SDF placements underscores persistent funding tightness despite the large headline liquidity injections.
This behaviour highlights the impact of elevated interest rates and ongoing uncertainty, which continue to shape banks’ liquidity management decisions.
Why this matters:
The pattern of repayments and liquidity management underscores the delicate balancing act the CBN is attempting to maintain.
While allowing large maturities to pass through the system, the apex bank is simultaneously using alternative tools to prevent a sustained surge in excess liquidity.
- For banks, this environment implies continued pressure on funding costs and cautious lending behaviour as liquidity remains expensive.
- For fixed-income investors, elevated yields on government securities are likely to persist, supporting strong demand for treasury bills and bonds.
- For the broader economy, tight financial conditions suggest that credit growth may remain constrained in the near term.
In essence, the short-term liquidity relief provided by cumulative repayments does not signal a shift away from the CBN’s broader tightening bias.
What you should know
The CBN’s liquidity actions in January 2026 ranked among the most aggressive in recent history, reflecting its determination to rein inflation and stabilise the foreign exchange market.
- These actions set the tone for the tight conditions still evident in early February.
- In January 2026, the apex bank sterilised over N15 trillion from the banking system through OMO and treasury bill issuances.
- The aggressive mop-up pushed funding costs higher and intensified interbank rate pressures as banks competed for limited cash.
Analysts estimate that about N8.61 trillion in inflows from OMO, treasury bill, and coupon maturities could hit the system in February.
However, despite these expected inflows, market participants broadly agree that overall liquidity conditions will remain tight as the CBN continues to prioritise price stability and foreign exchange market balance.
